![]() This factor organizes land, capital and labor to produce goods and services to earn profit. Entrepreneurial activities are engine of the production environment. They utilize all these factors of production for profit motive. It depreciates to become useless EntrepreneurshipĮntrepreneurs are those individual who combine all other factor of production i.e. ![]() Inflation is the depreciation in money, low efficiency is depreciation in machinery and weakness, pain is depreciation in labor. All the capital resources have an efficiency parameter, the more we use the more it wears. The value of capital depreciates with time. Capital is a human-made resource and is a mobile factor of production, supply is very elastic. One can increase or decrease the demand and supply of capital when needed. It has a quality, divisibility and portability. Capital can be transferred from one site to another, one country to another. It can be moved from one place to another place as per the need by entrepreneur or labor. Business cannot operate only with capital and requires labor for execution.Ĭapital has a high mobility among factors of production. It requires land and labor to produce something. All the investment made in the business, machinery, and tools is human-made.Ĭapital cannot act alone. It is every other physical factor other than land and labor.
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